Rex Newsletter, April 2023

Overview

Over the past six months, our tech companies have been focused on optimizing expenditures and generating positive cash flow across all businesses. Given the current state of the tech market, which presents significant opportunities, our focus is to position the company to thrive in any macroeconomic environment. We are confident our ecosystem of businesses will reach profitability in the near term.

Company Highlight: InsurePro

InsurePro is targeting profitability within approximately 14 months. The company is producing a return on customer acquisition cost of over 3x, and trending to 5x. Our ROAS (Return On Ad Spend) is averaging approximately 400%. Customer Acquisition Cost (CAC) recovery period is 6 months.

We have served thousands of customers over the last 12 months! Unexpectedly, we gained strong traction not only with real estate vendors but also with other small and medium-sized businesses and gig workers, such as DJs, caterers, photographers, etc.?

Our customers, who are largely small and medium-sized business owners, are most delighted by their ability to quickly get the insurance needed while saving money.?

Some additional notable accomplishments:

• Online Bind: InsurePro now supports online binding, eliminating the need for agents to fully execute a policy. This development significantly enhances the scalability of the product and business. We are open for business 24/7, having policies bound on nights and weekends.??
• New Artificial Intelligence Capabilities: InsurePro has created multiple machine learning capabilities which differentiate our product and serve our customers in a lower cost, more effective, and almost clairvoyant way. Our proprietary tools parse through a vast amount of insurance data and successfully deliver customers accurate and concise options. Besides being very cool, this saves hundreds of hours per week for our agents and truly wows customers.?
• Embedded Partnerships: InsurePro successfully built our first embedded partnership with another business that provides compliance services. This strategic partnership provides InsurePro a direct sales channel to small and medium-sized business owners who are being verified by property owners, property management companies, or other large operating companies for their ability to do work onsite, which includes insurance requirements. InsurePro will serve these contractors, providing an opportunity to either switch to a better insurance policy or get supplemental coverage needed to execute the work in question.?

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Other Companies

We will highlight additional companies in subsequent newsletters, as many continue to show strong promise.?

Below are a few updates:?

• JobCall: our natural language processing (NLP) solution for intake and routing of work orders / service requests is now successfully serving over 10,000 households with a net promoter score (NPS) of 8.6 out of 10.
• GetDone: our operating system for maintenance is now being used in thousands of households in Florida, Texas, and South Carolina with customers most excited about maintenance efficiency gains enabled by enhanced work order transparency and tracking.?
• IDcore: our easy to use, lightning-fast contractor / vendor credentialing and screening tool is now selling to hundreds of customers and our team is beginning work on a clever machine learning feature that provides strategic partners a reliable and transparent way to find contractors for hire.?
• PayUp: our best in class FinTech company has completed a minimum viable product (MVP) of a highly profitable and scalable payment processing solution that is now being successfully used by contractors, property managers, and owners.?
• OwnProp: our company tokenizing real estate on the blockchain has finalized the integrated app experience, improving the user interface and ease of purchase for real estate investors.?

Ways You Can Help

There are always three ways to help. (1) Talent. We seek excellent, missionary tech talent. (2) Investors. We seek aligned investment partners. (3) Strategic opportunities. We are always open to partnerships, new customers to serve, and exit opportunities to serious buyers.

On hiring, we seek most pressingly:?

• ML (Machine Learning) engineers?
• PropTech business development leaders with deep multifamily property management connections?
• InsurTech product leaders
• InsurTech business development leaders with deep insurance industry knowledge and connections
• FinTech leaders with deep expertise in payment processing?

For strategic partnerships, we seek most pressingly:?

• Strategic, embedded partnerships for InsurePro. Ideal partners would be large compliance companies that help screen contractors for proper insurance, certifications, etc. InsurePro will not only serve the end users by providing appropriate insurance but also generate additional revenue for strategic partners.?
• Large customers to expand JobCall to larger property owners. Our natural language processing (NLP) solution for handling work requests saves owners money while providing superior service.?

Closing Message from Pete

We look forward to continuing to serve our customers, teammates, shareholders, and the society at large by empowering people and elevating humanity in business.

Thank you to all our backers, including our many friends who have generously opened doors, publicly supported on social media, invested capital, and more. We would not be here without you. We are so grateful. You are truly members of our community at Rex.?

-Pete?